Dogecoin (DOGE), the popular memecoin, has been trading sideways above the 200-day exponential moving average (EMA) since January 7th. Despite a 0.4% decrease in price over the past week and a 14% decline over the last month, the recent surge in network activity has caught the attention of investors.
According to data from market intelligence firm IntoTheBlock, more than 890,000 new Dogecoin addresses have been created in the past week. This increase in new addresses coincides with an impressive 86% adoption rate as new users carry out their first transactions on the blockchain.
Moreover, Santiment’s data reveals a significant spike in daily active addresses (DAA) for Dogecoin. The number of DAA rose from 124,240 on January 23rd to over 498,000 on February 2nd.
This surge in network activity can be attributed to several factors. Firstly, the release of the iconic Doom video game on the Dogecoin blockchain has generated considerable interest. Additionally, the upcoming DOGE-1 launch has further contributed to the network’s growing popularity. Lastly, the increasing utilization of Dogechain, a layer-2 blockchain built on the Dogecoin network, has also played a role.
These factors have sparked interest in the Dogecoin network, and if this trend continues, it could impact the price of DOGE as investors start taking positions in the coin.
However, from a technical standpoint, the price of DOGE appears to be heading for a deeper correction from its current levels. Since December 6th, 2023, DOGE has been experiencing a series of lower highs and relatively equal lows around $0.078, forming a descending triangle on the daily chart. A decisive close below the support line, formed by the equal lows, would confirm this bearish technical formation and potentially lead to a drop in price equal to the height of the triangle.
Despite this bearish outlook, the relative strength index (RSI) is currently in the neutral zone at 45, indicating traders’ current indecisiveness.
Please note that this article does not provide investment advice or recommendations. Investors should conduct their own research before making any investment or trading decisions.